Brent Crude Oil to end 2023 at $80 – Deutsche Bank

Crude had its best week since October. Brent Oil rose $1.89 to $86.39. Strategists at Deutsche Bank expect the black gold to end the year around the $80 level.

Signs of excess supply for H1 before demand recovers in H2 2023

“We see Brent at $75/bbl for H1 before balances improve in H2 to $80/bbl.”

“We see recession slowing demand growth, but as China’s exit from zero-Covid occurred earlier than expected, there is less scope for ‘slingshot’ rebound in Q2. By H2, global demand should rise to 1 mmb/d above H2-2019 level.”

“We see excess supply sustaining downside pressure for H1, creating tension with OPEC’s policy bias, before demand recovers in H2 2023.”